Member Info for Tray556

Market is back to giving POW a ridiculous valuation again I see today! Per my calculations:

- Cash in the Bank = circa £2mil

- Listed GMET & FCM shares = circa £8.5mil

- FDR & UEE pre-IPO valuations = circa £4.1mil

VALUE OF CASH & INVESTMENTS ALONE = £14.6 mil vs Market cap (at 0.875p) of £19.3mil

That's approx 75% of POW's market cap alone. Surely a fantastic top up opportunity here when only a £4.7mil valuation is given to:

- 16 Uranium projects, some projects will drill targets almost ready.

- Molopo Farms - Nickel/PGM drilling underway

- Tati Gold - Getting nearer to defining drill targets.

- Saudi plans for 2024 (which Sean has indicated updates will be coming soon)

- Possible KAT/POW deals with PJ & Sean taking key positions in KAT.

Upside in GMET alone could cover POW's entire current market cap in my opinion!

I was having a think before about the recent PJ & Sean appointments over at KAT. I noticed from the initial KAT RNS the other day the following key comment “particular focus will be on critical metal opportunities, including uranium.” KAT currently have zero Uranium exposure.

One win/win for both POW and KAT would be if POW spun a few U assets out into KAT. Let’s say they did that and took 25% of KAT equity in return and became the KAT cornerstone investor. KAT would then be almost like another UEE for POW but with PJ pushing the strategy. Also worth noting there would be no IPO fees saving POW £100,000s in legal costs etc.

KAT know that there are very limited Uranium exploration opportunities in Athabasca and POW know that they cannot explore all 15+ of their U assets. PJ will have a good grasp on the Athabasca basin from the land grab work he did for POW from 2021-2023. Plus Sean knows that PJ pushing the strategy at KAT would mean 70 hour weeks, unlike 70 hours a year which Louis Cotezee was putting in at KAT over the past few years.

For example, POW give 3-4 U assets to KAT and POW get 25% of KAT stock in return. 3-4 U assets then get heavily explored and POW gain from any upside on a cash free ride basis. This would fit nicely into the POW business model. POW can still concentrate in 2024 on the Perch River Helium anomaly which is owned 100% by POW. POW just don't have the working capital to explore 15+ licences but they can use these U assets as currency. Nobody wanted the U assets in 2021-2023 when they were picking them up. I suspect many will want them as the Uranium bull market continues to gather pace.

Sean would only be joining KAT in my view if he could also have some positive impact on POW by doing so. As far as I am aware, Sean owns no KAT shares, but is sat on £125,000+ of POW stock as at today.

I’m sure the NOMADs would be getting a bit nervous due to the conflict of interest here; however, it seems like the above could be a win/win for both sets of shareholders moving forward.

Of course there are other opportunities such as POW giving KAT a few U assets in return for a controlling direct stake of Haneti. That would go a little bit against the POW model of reducing their exposure to high cash burning assets but certainly a possibility.

Could be way off the mark here, just seems a bit of a coincidence why KAT are taking on POW/ex-POW executives whilst declaring that they want a particular focus on Uranium.

I make that POW's 18th Athabasca Basin area property for the Uranium portfolio. This one costing around £1,000 to stake and its right in the Athabasca Basin (most of POW's U assets are on the outskirts). Only 2 of those assets earmarked for the UEE IPO.

Seems as though the previous claim owner was unable to satisfy the claim maintenance requirements so it was reopened and POW won the highly competitive staking claim.

UEE IPO to go live by end of March 2024 and that's to add to that fact that at current mid-prices, 70% of POW's market valuation is already covered by cash in the bank, listed investments (GMET & FCM) as well as pre-IPO investment values of (UEE & FDR) ... not a lot priced in here!

GMET has traded on the OTC market for each of the last 5 trading days.

Not huge volumes but it does appear that Oliver is slowly managing to get the word out to US investors which is good to see.

I also noticed a US based YouTube channel with around 50,000 subscribers was talking about Pilot Mountain / US Tungsten requirements over the weekend. I think the video got about 3,500 views within the first 24 hours.

Expecting GMET to have a solid run in 2024.

Apologies, the English was a bit "weak" on that last post!

Purebond the new top POW shareholder with over 100mil shares as notified today via TR1.

They also took exactly £250,000 in the recent premium placing @ 1p a share. 25mil share increase from their previous position as notified just before the placing last week.

Who took the other £1.05mil in the recent £1.3mil placing is the question?

The Saudis were involved as per the placing RNS ... but would have needed to have taken around 66.4mil shares in the placing / circa £664,000 to hold 3%+ of POW.

The deep pockets loading up at 1p, the weak pockets selling out this weak sub 1p.

That last message should have said "sell the 50% for £50mil" in my GMET example.

The POW model struggles to work when the markets are poor, but as soon as the market clicks into gear the balance sheet will swell and the company will become far more appealing to the bigger boys. That's why I am personally positioned here.

The POW model is that dividends & share buy backs will happen once there is excess working capital. The likely source of the excess working capital will come from fireworks within the IPO companies which POW hold substantial stakes in. Any successes, POW sell down their investments and take the cash back to the POW bank account.

Lets take GMET for example. Solid looking early stage Tungsten asset, $mil's of DoD funding arrives in 2024, Pilot Mountain is drilled and the Tungsten mineral estimate is enhanced. GMET suddenly a £100mil company. POW at that point my hold 50% .... sell the 50% of £50mil. That is POW's working capital requirements covered for many years. The excess will then be distributed back to shareholders. Of course, that is just one of POW's spin out companies.

2022 & 2023 have been awful years for the junior exploration market and therefore IPOs have been like tumbleweed. GMET one of the view few IPOs to go live in 2023 and are trading higher than their IPO price.

UEE & FDR will both be live this year, I'm 99% sure of that. It removes risk from POW, and gives them cash free rides in multiple exploration companies moving forward. You can probably add many more spin outs over the years too. If market conditions for exploration plays are more favourable, the spins out will happen at a faster pace too.

That is not to say that POW may have some commercial successes in directly owned assets as well such as Molopo & Tati. I personally prefer to see the IPOs go live as Molopo & Tati are cash intensive and higher risk. Taking GMET as an example again, POW do absolutely nothing and don't even open their wallet, yet they have a 61% claim to any GMET rewards in effect.

When you state below "The IPOs are doing well for pow's balance sheet yes; but that's not raising the sp at the moment." ... I read that as "HUGE BUY OPPORTUNITY". When the business is moving into a £35mil+ valuation with £500k in the bank and a handful of licences like in 2021, that is the total opposite of a buy opportunity, but that's the AIM punter for you.

Big money also moving in at the 1p zone as well as the well known successful investor Rick Rule taking a £1mil position at 0.85p last year. Both are also clear buy indicator for anyone investing logically.

Currently sat here with a large position now at an average of 0.81p. More than happy with Sean's performance to date in testing market conditions and the POW portfolio as a whole.

I think you may be just looking for a few excuses there sol001 for the recent pullback. Yes the POW float is quite large and it does suffer from a lot of loose shares at times. But I didn't see GGP having any problems a couple of years ago with their 3.5bil float at the time moving from 4p to 40p.

How would you suggest that Sean looks at this? Sean is pushing on the IPOs. GMET for example are doing very well for POW's balance sheet. UEE IPO should be online within a matter of weeks and FDR later this year. All of which adds to the POW balance sheet and when lock in agreements comes to an end, it gives POW options for non-dilutive finance which in turn controls the share float to some extent.

POW now in a position where cash in the bank + listed investments (FCM & GMET) + pre-IPO investments (UEE & FDR) alone equal circa 65% of the POW's entire market cap. With Molopo also getting drilled, solid updates from Tati, Saudi plans materialising and 15 other U assets to progress outside the UEE IPO (plus a lot more in the POW portfolio), its very hard to see how this isn't a huge opportunity for junior exploration investors.

Plenty to like here and I'm sure Sean will just keep pushing the business on as he has been doing for the past 12 months in what has been extremely poor conditions for the POW model.

The POW model getting all its ducks in a row now, just ready for when the market starts giving junior exploration plays a chance with a fair wind.

Will continue to add at any price sub 1p after the business was financed to the tune of £1.3mil by those with deep pockets. Any selling sub 1p is completely illogical in my view.

Another Pilot Mountain update from GMET this morning. GMET currently valued at around £12mil.

You could make many cases for Pilot Mountain alone being worth many multiples of £12mil. Especially with US DoD non-dilutive funding landing at any moment over the next few months.

GMET well worth a punt here from these prices. Fantastic CEO too with a great CV in the Nevada area and a clear passion for the job.

Fully expecting GMET to have a very good 2024.

DRILLING UPDATE

· Power Metal confirms the commencement of diamond drilling at Molopo Farms, targeting a steeply-dipping high-priority conductor at target area T1-14. The drill hole in progress has a target depth of 700-800m.

· The Company also recently completed ground Audio-frequency Magnetotelluric ("AMT"), as well as magnetics over target areas T1-14 and T1-9.

· The goal of the AMT work was to further refine targeting at two locations along the multi-kilometre scale steeply-dipping conductor, co-incident with the keel of the feeder zone intrusion and which extends across T1-14 and T1-9.

· The results of the AMT work have now been received and the data has allowed the Company to further refine its targeting at target area T1-14 in advance of drill commencement.

· The Company's CEO, Sean Wade, will be arriving on site shortly to liaise with the Company's in-country operations team.

Molopo drilling about to start per the pictures on POW’s Twitter this evening.

Drill rig in place now.

7,000,000 share delayed transaction just posted @ 1.14p

Golden cross technical indicator showing on the POW chart today too … nicely timed long awaited Tati RNS update with positive results for commerical steps forward. Sean also in Botswana this week to drive forward those possible commercial talks.

News coming from all angles in 2024 for POW. Latest broker note shows 3.3p price target.

Interesting thoughts too Donkey and enjoy reading your posts as we appear to be on the same page when it comes to POW.

As a caveat to your caveat, I was simply giving £50mil (2.25p) mid 2024 and £100mil (4.5p) by the end of 2024 as targets based on the current climate where the only bull market appears to be in the Uranium market as far as POW are concerned. The AIM market remains on its knees at pre-covid levels, gold/silver miners are struggling etc.

If the AIM market clicks into gear later this year we could see some crazy valuation again. I'm sure interest rate reductions could be a possible catalyst.

The key point is the final line of your previous post. POW was valued at £39mil (3.5p) back in 2021. This was effectively based on a handful of licences and £500k in the bank. What they have built since then is at least x50 the business they had back then. All POW need is a bit more liquidity in this space and I feel its coming.

I'm sure many like myself are sitting there this weekend and saying "did I get enough POW shares whilst the company was incorrectly placed in the bargain bin for the last 12 months” ....

If we think back to a few years ago with POW, it was simply a case of "POW needed good assay results otherwise the SP was immediately under pressure", this is the case for 90%+ exploration companies and it's the nature of the beast. I can remember the last Molopo programme, where POW had thrown a massive chunk of their working capital at the project. Results were therefore critical, they were no very strong (not a disaster) but the SP took a beating at a time money was being drained from the AIM market left. right and centre.

Now fast forward to 2024, over the past year or so the business has moved itself into a fantastic position where "assay results are "a bonus". There is so much going on in terms of other elements of the business but the market has just bizarrely ignored the strong progress POW have made. It is now safe to say that it is not business critical for assay results to be strong which is a great position to be in as shareholders in my opinion and breaks POW away from the mould of so many other junior exploration companies and for me now gives POW a unique selling point which the market is slowly starting to pick up on.

Tati results are only going to be soil sample results but from memory there were a lot of samples taken. This will add to the solid RC drill assays achieved within the past couple of years (3m @ 5g/t Au & 1m @ 47g/t Au) which is not too shabby in my eyes. This should lead to guidance on next steps for that project. But it isn't critical because POW still have the following in the pipeline:

- UEE IPO going live in Q1 2024

- Saudi updates could be announced in Q1 2024 regarding next steps there. Could be significant due to the Saudi backer taking POW shares in the latest £1.3mil financing.

- Molopo drilling commencing in Q1 2024, with assays maybe at the back end of Q2 2024

- GMET DoD funding may be announced in Q1/Q2 2024 and if strong would create significant interest in that business which POW hold circa 61% of (worth circa £7.25mil to POW at present)

- Uranium Exploration updates from Athabasca and maybe more news on the Helium anomaly found in 2023 where POW are in the process of teaming up with a Helium expert to investigate that once things get a bit warmer in Saskatchewan. Also worth noting that Uranium prices are currently at a $107/lb 16 year high.

- FDR IPO to go live later in 2024 once market conditions allow

HNW investors from the UK and Saudi Arabia have just thrown in £1.3 million (at a premium with no warrant incentives attached) and cashed the business up for the foreseeable. Hard to argue POW are not in a very strong position here and as a UK junior exploration investor, POW are putting forward a very strong business case for investors to hold a slice of the POW pie in their portfolios.

Expecting POW to be valued at at least £50mil (circa 2.25p) by the middle of 2024 and possibly £100mil (circa 4.5p) by the end of 2024 assuming the markets give POW a fair wind.

Possible catalysts for next week:

- Molopo drilling to commence with Sean onsite Wednesday/Thursday. Most likely a bit of media released too. Finer details of the drill programme most likely announced via RNS too.

- Tati soil sample assays to be announced

- Possibly 1 or 2 TR1s filed from the recent £1.3mil financing showing updated holdings.

- Golden Cross on the POW chart by next Tuesday (could even be Monday if the SP gets a bit of traction)

Plenty to like and we should see a continuation of the SP movement northwards as the business in my eyes is still a fair way off fair value.

Arguably the best shape the business has been in. The share register certainly stronger and from the recent performance of GMET (now worth £7.25mil) & the funds raised this week (probably circa £2mil in the bank), the balance sheet is looking very healthy too.

Hi Roger56 (confusing name to the other infamous Roger). Roger65 supposedly crystallised his POW loss a few weeks ago to move to GMET who are owned 61% by POW anyways. Another thing I found very confusing at the time.

2nd interview of the day. This time with Proactive:

https://www.proactiveinvestors.co.uk/companies/news/1040062/power-metal-resources-ceo-says-1-3m-financing-boosts-strategic-growth-options-1040062.html?viewSource=TwitterUK

Its only "down" because of the uncrossing trade at 1.1p last night. The price is flat compared to 4:30pm yesterday,